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Item R3BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 06/19/13 - KL Bulk Item: Yes X No Division: County Attorney Staff Contact: Cynthia L. Hall, 295-3174 Lynn Garcia, 292-3492 AGENDA ITEM WORDING: Approval to advertise a public hearing to consider an ordinance creating Monroe County Code Sec. 23- 42, creating an additional homestead exemption to certain persons 65 or older, as allowed pursuant to F.S. 196.075, as voted on by the citizens of Florida in the November 2012 elections. ITEM BACKGROUND: Monroe County currently provides one $50,000 homestead exemption to seniors age 65 and older whose household income does not exceed $20,000 or an inflation adjusted amount, in Section 23-41 of the Monroe County Code. In order to better provide for the state's seniors, the Florida electorate passed Amendment 11 on the November 2012 ballot, allowing counties and municipalities the option of creating another homestead exemption for certain qualifying seniors, in addition to or instead of the existing exemption. The additional exemption would be available to persons 65 or older for the assessed value of the property for any person with legal or equitable title, so long as the property has a just (market) value of less than $250,000; has been maintained as the owner's permanent residence for 25 years; and the owner's household income does not exceed state income limitations (currently $27,030). The additional exemption would take effect in 2013. The proposed ordinance must be adopted by a supermajority (majority + 1) vote of the members of the BOCC. PKEVIOUS RELEVANT BOCC ACTION: N/A CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: Approval. TOTAL COST: INDIRECT COST: TBD BUDGETED: Yes No DIFFERENTIAL OF LOCAL PREFERENCE: COST TO COUNTY: advertising costs SOURCE OF FUNDS: REVENUE PRODUCING: Yes No x AMOUNT PER MONTH Year APPROVED BY: County Atty ` Olv&chasing Risk Management DOCUMENTATION: Included x Not Required _ DISPOSITION: Revised 01/13 AGENDA ITEM # MEMORANDUM Office of the Monroe County Attorney TO: Mayor and County Commissioners FROM: Cynthia L. Hall, Assistant County Attorney Ckk THROUGH: Bob Shillinger, County Attorney DATE: May 30, 2013 SUBJECT: Senior Homestead Tax Exemption Ordinance In April 2013, the Property Appraiser's office inquired whether the County had adopted a Senior Homestead Tax Exemption ordinance. Based on that inquiry, the ordinance is being presented to you for your consideration. Until November 2012, the State of Florida provided one tax exemption for low-income seniors. That exemption, which was contained in what is now Article VII, s. 6(d)(1) of the Florida Constitution, and also in Sec. 196.075(2)(a), F.S., provided counties and municipalities could adopt an ordinance granting a $50,000 annual exemption (150,000 Exemption") for property owners over the age of 65 who have legal or equitable title to real property, reside in their homesteaded property, and meet income criteria (currently $27,030 annual household income). The just (market) value of the property is not a factor in this exemption. Monroe County adopted an ordinance containing the $50,000 Exemption in 1999. The ordinance is contained in Section 23-41 of the Monroe County Code. In November 2012, Florida voters approved an amendment to the Constitution creating an additional exemption — the Senior Homestead Tax Exemption. This exemption, contained in Art. VII, s. 6(d)(2) of the Constitution and its enabling statute, Sec. 196.075(2)(b), F.S., provides that counties and municipalities may adopt an ordinance granting the Senior Homestead Tax Exemption. Both exemptions apply to persons age 65 and over, holding legal or equitable title, who reside in their homesteaded property, with an annual household income of (currently) $27,030 or less. There are two differences between the Senior Homestead Tax Exemption and the $50,000 Exemption: 1. The Senior Homestead Tax Exemption grants an exemption for the full assessed value of the property, rather than $50,000, and 2. The Senior Homestead Tax Exemption only applies to properties with just (market) values of $250,000 or less (there is no cap on the just value of property eligible for the $50,000 Exemption). The constitutional provision and Sec. 196.075 give counties and municipalities the option of adopting an ordinance containing the Senior Homestead Tax Exemption instead of or in addition to the $50,000 Exemption. Three municipalities in Monroe County have already passed ordinances containing the Senior Homestead Tax Exemption: Key West, Marathon, and Islamorada. Key West's ordinance adopts the Senior Homestead Tax Exemption in place of the $50,000 Exemption. Layton and Key Colony Beach adopted the Senior Homestead Tax Exemption in addition to the $50,000 Exemption. The other two municipalities are expected to take up the Senior Homestead Tax Exemption this summer. Currently, the ordinance is written so as to adopt the Senior Homestead Tax Exemption in addition to the $50,000 Exemption. That decision, though, is up to the Board. Although the ordinance reads (tracking the language in the Constitution and the statute) that applications for the exemption must be submitted by March 1 of the year for the exemption to apply, the Property Appraiser's office advises that they intend to implement the exemption in 2013. They intend to use the information on the applications for the $50,000 Exemption already submitted. The fiscal impact of the ordinance (reduced revenue) is currently being calculated, and will be presented prior to the next BOCC meeting. 2013. If this item is approved, the ordinance will be advertised for a public hearing in July Please contact me should you have any questions. Thank you. ORDINANCE NO. — 2013 AN ORDINANCE RELATING TO HOMESTEAD TAX EXEMPTIONS FOR SENIORS; CREATING SECTION 23-42 OF THE MONROE COUNTY CODE; GRANTING AN ADDITIONAL HOMESTEAD EXEMPTION EQUAL TO THE PROPERTY'S ASSESSED VALUE, FOR PERSONS AGE 65 AND OLDER WHO HAVE LEGAL OR EQUITABLE TITLE TO REAL ESTATE WITH A JUST MARKET VALUE LESS THAN $250,000.000 AND A HOUSEHOLD INCOME THAT DOES NOT EXCEED $27,030; REQUIRING DELIVERY OF THE ORDINANCE TO PROPERTY APPRAISER; PROVIDING FOR SEVERABILITY; PROVIDING FOR THE REPEAL OF ALL ORDINANCES INCONSISTENT HEREWITH; PROVIDING FOR INCORPORATION INTO THE MONROE COUNTY CODE OF ORDINANCES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, in November 2012 Florida voters approved Amendment 11 to Article VII, section 6(d) of the Florida Constitution, pursuant to which counties and municipalities may adopt an ordinance granting an exemption up to the property's assessed value, to any person age 65 or older who holds legal or equitable title to real estate with a just (market) value of less than $250,000, who has maintained the real estate as a permanent residence for at least 25 years, and whose household income does not exceed the income limitations set forth in state law, which is currently $27,030 and adjusted annually (the "Senior Homestead Tax Exemption"), now codified in Section 196.075(2), F.S.; and WHEREAS, 63.5% of Monroe County voters approved the Senior Homestead Tax Exemption; and WHEREAS, Art. VII, s. 6(d) of the Constitution and Section 196.075(2), F.S. both provide that counties and municipalities may adopt the Senior Homestead Tax Exemption instead of or in addition to the exemption already existing in Art. VII, s. 6(d)(1) of the Constitution and Sec. 196.075(d)(1), F.S., which grants authority to counties and municipalities to adopt ordinances allowing a homestead exemption up to $50,000 for seniors meeting the same low income criteria; and WHEREAS, Monroe County previously implemented a homestead exemption of $50,000 for certain qualifying seniors, currently codified at Section 23-41 of the Monroe County Code; and WHEREAS, this Board of County Commissioners now desire to adopt an ordinance granting the Senior Homestead Tax Exemption to its residents who meet the criteria; and WHEREAS, Section 196.075(4)(a) provides that this exemption must be authorized by a majority plus one vote of the members of the governing body of the county granting such exemption; and NOW THEREFORE, BE IT ORDAINED by the Board of County Commissioners of Monroe County, that: SECTION 1. Monroe County Code, Chapter 23, Article II, Division 2, Section 23-42 is hereby created to read as follows:' Section 23-42. — Grant of second additional homestead exemption to certain persons 65 or older. (a) The board of county commissioners hereby grants an additional homestead exemption equal to the property's assessed value to any person who has attained the age of 65 by January 1 of the year in which they are applying for the exemption and who meets the following requirements: 1) The applicant holds legal or equitable title to homestead real property with a must (market) value less than $250,000.00• and 2) The applicant has maintained thereon permanent residence as the owner of the property for no less than 25 years: and 3) The applicant's household income does not exceed $27 030 or such other amount as may be annually adjusted by the Florida Department of Revenue (b) The exemption set forth in subsection (a) shall be in addition to and shall not replace the exemption provided for in Section 23-41 of the Monroe County Code (c) The exemption set forth in subsection (a) of this section applies only to taxes levied by the Monroe County Board of County Commissioners (d) Any taxpayer claiming the exemption granted in subsection (a) of this section must annually submit to the Property Appraiser, not later than March 1 a sworn statement of household income on a form prescribed by the Department of Revenue Upon request of the Property Appraiser, supporting documentation may be requested and due no later than June 1. Failure to file either the sworn statement or supporting documentation shall mean a waiver of the exemption for that year. (e) This additional exemption shall be available commencing with the 2013 tax roll and shall continue with all subsequent tax rolls The Property Appraiser may begin accepting applications and sworn statements for the year 2013 tax roll as soon as the appropriate forms are available from the Department of Revenue State law reference—Authorityfor above exemption, F.S. § 196.075. SECTION 2. DELIVERY TO THE PROPERTY APPRAISER. The Board of County Commissioners, by and through the Clerk, shall immediately deliver a copy of this ordinance to the Property Appraiser. ' New (additional) language is shown with underlining. SECTION 3. SEVERABILITY. Should any provision of this Ordinance be declared by a court of competent jurisdiction to be invalid, the same shall not affect the validity of this Ordinance as whole, or any part thereof, other than the part declared to be invalid. If this ordinance or any provision thereof shall be held to be inapplicable to any person, property or circumstances, such holding shall not affect its applicability to any other person, property or circumstances. SECTION 4. CONFLICT WITH OTHER ORDINANCES. All ordinances or parts of ordinances in conflict with this Ordinance are hereby repealed to the extent of said conflict. SECTION 5. INCLUSION IN THE CODE OF ORDINANCES. The provisions of this Ordinance shall be included and incorporated in the Code of Ordinances of the County of Monroe, Florida, as an addition or amendment thereto, and shall be appropriately renumbered as needed to conform to the uniform numbering system of the code. SECTION 6. EFFECTIVE DATE. This Ordinance shall take effect upon filing with the Department of State as provided in Section 125.66(2), Florida Statutes. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of said Board held on the _ day of , 2013. Mayor Neugent Mayor Pro Tem Carruthers Commissioner Murphy Commissioner Rice Commissioner Kolhage (SEAL) Attest: AMY HEAVILIN, Clerk Clerk BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA r. Mayor/Chairperson MONROE COUNTY ATTORNEY A ROVED,AS TO FO M: NTASSISJY NT COUNTY ATTORNEY Date_" ADDITIONAL BACK-UP: Sec. 23-41, Monroe County Code Sec.196.075(2)(a), Florida Statutes Art. VII, s. 6(d)(2), Florida Constitution Municode http://Iibrary.municode.com/prin... Page 1 of 1 >> >> Chapter 23 - TAXATION >> ARTICLE 11. - AD VALOREM TAXATION >> DIVISION 2. - HOMESTEAD EXEMPTION FOR CERTAIN PERSONS AGE 65 OR OLDER >> DIVISION 2. - HOMESTEAD EXEMPTION FOR CERTAIN PERSONS AGE 65 OR OLDER Sec. 23-40. - Definitions. Sec. 23-41. - Grant of additional homestead exemption to certain persons 65 or older. Secs. 23-42--23-70. - Reserygd. Sec. 23-40. - Definitions. The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Household means a person or group of persons living together in a room or group of rooms as a housing unit, but the term does not include persons boarding in or renting a portion of the dwelling. Household income means the adjusted gross income, as defined in section 62 of the United States Internal Revenue Code, of all members of a household. (Code 191-9. § 2-280, Ord. No. 045 1999, § 1) Sec. 23-41. - Grant of additional homestead exemption to certain persons 65 or older. (a) The board of county commissioners hereby grants an additional homestead exemption of $50,000.00 to any person who has the legal or equitable title to real estate and maintains thereon permanent residence as owner, who has attained the age of 65, and whose household income does not exceed $20,000.00, or the inflation adjusted amount provided for in F.S. § 196.075(3). (b) The exemption granted in subsection (a) of this section applies only to taxes levied by the board of county commissioners. (c) Any taxpayer claiming the exemption granted in subsection (a) of this section must annually submit to the property appraiser, not later than March 1, a swom statement of household income on a form prescribed by the Department of Revenue. (Code 1979, § 2-281; Ord. No. 045 1999, § 2; Ord No. 008-2007, § 1) State law reference— Authority for above exemption, F. S § 196.Of5. Secs. 23-42-23-70. - Reserved. http:/Aibrary.municode.com/prin... http://Iibrary.municode.com/prin... 5/29/2013 1196.075 Additional homestead exemption for persons 65 and older.— (1) As used in this section, the term: (a) `Household" means a person or group of persons living together in a room or group of rooms as a housing unit, but the term does not include persons boarding in or renting a portion of the dwelling. (b) "Household income" means the adjusted gross income, as defined in s. 62 of the United States Internal Revenue Code, of all members of a household. (2) In accordance with s. 6(d), Art. VII of the State Constitution, the board of county commissioners of any county or the governing authority of any municipality may adopt an ordinance to allow an additional homestead exemption of up to $50,000 for any person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, who has attained age 65, and whose household income does not exceed $20,000. (3) Beginning January 1, 2001, the $20,000 income limitation shall be adjusted annually, on January 1, by the percentage change in the average cost -of -living index in the period January 1 through December 31 of the immediate prior year compared with the same period for the year prior to that. The index is the average of the monthly consumer -price - index figures for the stated 12-month period, relative to the United States as a whole, issued by the United States Department of Labor. (4) An ordinance granting additional homestead exemption as authorized by this section must meet the following requirements: (a) It must be adopted under the procedures for adoption of a nonemergency ordinance specified in chapter 125 by a board of county commissioners, or chapter 166 by a municipal governing authority. The Florida Constitution ARTICLE VII FINANCE AND TAXATION SECTION 6. Homestead exemptions. — (a) Every person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another legally or naturally dependent upon the owner, shall be exempt from taxation thereon, except assessments for special benefits, up to the assessed valuation of twenty-five thousand dollars and, for all levies other than school district levies, on the assessed valuation greater than fifty thousand dollars and up to seventy-five thousand dollars, upon establishment of right thereto in the manner prescribed by law. The real estate may be held by legal or equitable title, by the entireties, jointly, in common, as a condominium, or indirectly by stock ownership or membership representing the owner's or member's proprietary interest in a corporation owning a fee or a leasehold initially in excess of ninety-eight years. The exemption shall not apply with respect to any assessment roll until such roll is first determined to be in compliance with the provisions of section 4 by a state agency designated by general law. This exemption is repealed on the effective date of any amendment to this Article which provides for the assessment of homestead property at less than just value. (b) Not more than one exemption shall be allowed any individual or family unit or with respect to any residential unit. No exemption shall exceed the value of the real estate assessable to the owner or, in case of ownership through stock or membership in a corporation, the value of the proportion which the interest in the corporation bears to the assessed value of the property. (c) By general law and subject to conditions specified therein, the Legislature may provide to renters, who are permanent residents, ad valorem tax relief on all ad valorem tax levies. Such ad valorem tax relief shall be in the form and amount established by general law. (d) The legislature may, by general law, allow counties or municipalities, for the purpose of their respective tax levies and subject to the provisions of general law, to grant either or both of the following additional homestead tax exemptions: (d) The legislature may, by general law, allow counties or municipalities, for the purpose of their respective tax levies and subject to the provisions of general law, to grant either or both of the following additional homestead tax exemptions: (1) An exemption not exceeding fifty thousand dollars to any person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner and who has attained age sixty-five and whose household income, as defined by general law, does not exceed twenty thousand dollars; or (2) An exemption equal to the assessed value of the property to any person who has the legal or equitable title to real estate with a just value less than two hundred and fifty thousand dollars and who has maintained thereon the permanent residence of the owner for not less than twenty-five years and who has attained age sixty-five and whose household income does not exceed the income limitation prescribed in paragraph (1). The general law must allow counties and municipalities to grant these additional exemptions, within the limits prescribed in this subsection, by ordinance adopted in the manner prescribed by general law, and must provide for the periodic adjustment of the income limitation prescribed in this subsection for changes in the cost of living. (e) Each veteran who is age 65 or older who is partially or totally permanently disabled shall receive a discount from the amount of the ad valorem tax otherwise owed on homestead property the veteran owns and resides in if the disability was combat related and the veteran was honorably discharged upon separation from military service. The discount shall be in a percentage equal to the percentage of the veteran's permanent, service -connected disability as determined by the United States Department of Veterans Affairs. To qualify for the discount granted by this subsection, an applicant must submit to the county property appraiser, by March 1, an official letter from the United States Department of Veterans Affairs stating the percentage of the veteran's service -connected disability and such evidence that reasonably identifies the disability as combat related and a copy of the veteran's honorable discharge. If the property appraiser denies the request for a discount, the appraiser must notify the applicant in writing of the reasons for the denial, and the veteran may reapply. The Legislature may, by general law, waive the annual application requirement in subsequent years. This subsection is self-executing and does not require implementing legislation. (f) By general law and subject to conditions and limitations specified therein, the Legislature may provide ad valorem tax relief equal to the total amount or a portion of the ad valorem tax otherwise owed on homestead property to the: (1) Surviving spouse of a veteran who died from service -connected causes while on active duty as a member of the United States Armed Forces. (2) Surviving spouse of a first responder who died in the line of duty. (3) As used in this subsection and as further defined by general law, the term: a. "First responder" means a law enforcement officer, a correctional officer, a firefighter, an emergency medical technician, or a paramedic. b. "In the line of duty" means arising out of and in the actual performance of duty required by employment as a first responder. History. —Am. S.J.R. 1-13, 1979; adopted 1980; Am. S.J.R. 4-E, 1980; adopted 1980; Am. H.J.R. 3151, 1998; adopted 1998; Am. proposed by Constitution Revision Commission, Revision No. 13, 1998, filed with the Secretary of State May 5, 1998; adopted 1998; Am. H.J.R. 353, 2006; adopted 2006; Am. H.J.R. 631, 2006; adopted 2006; Am. C.S. for S.J.R. 2-1), 2007; adopted 2008; Am. S.J.R. 592, 2011; adopted 2012; Am. H.J.R. 93, 2012; adopted 2012; Am. H.J.R. 169, 2012; adopted 2012.